Test1 - International Business The New Realities 2e(Cavusgil\/Knight\/Riesenberger Chapter 1 Introduction What Is International Business 1 International

Test1 - International Business The New Realities...

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International Business: The New Realities, 2e (Cavusgil/Knight/Riesenberger)Chapter 1 Introduction: What Is International Business?1) International business is primarily carried out by individual companies. Diff: 1Page Ref: 4Skill: ConceptObjective: 1-1AACSB: Dynamics of the global economy2) The globalization of markets refers to the growing independence and self-sufficiency of countries worldwide.Diff: 2Page Ref: 4Skill: ConceptObjective: 1-1AACSB: Dynamics of the global economy3) International business today is predominantly the domain of large, multinational companies.Diff: 2Page Ref: 13Skill: ConceptObjective: 1-4AACSB: Dynamics of the global economy4) Exporting is an entry strategy involving the sale of products or services to customers located abroad. Diff: 1Page Ref: 5Skill: Concept
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Objective: 1-2AACSB: Dynamics of the global economy5) A country's economic assets are also known as factors of production. Diff: 2Page Ref: 5Skill: ConceptObjective: 1-2AACSB: Dynamics of the global economy6) The two primary types of international investment are portfolio investment and foreign direct investment. Diff: 1Page Ref: 5Skill: ConceptObjective: 1-2AACSB: Dynamics of the global economy7) Over the last few decades, export activity by nations has grown more quickly than has domestic production. Diff: 2Page Ref: 5Skill: ConceptObjective: 1-2AACSB: Dynamics of the global economy8) In the past, international trade and investment activities were mainly conducted by companies that sold services. Diff: 1Page Ref: 4
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Skill: ConceptObjective: 1-1AACSB: Dynamics of the global economy9) Services are the fastest growing sector in international trade.Diff: 2Page Ref: 8Skill: ConceptObjective: 1-2AACSB: Dynamics of the global economy10) The level of government intervention in commercial activities is similar across most countries. Diff: 2Page Ref: 11Skill: ConceptObjective: 1-3AACSB: Dynamics of the global economy11) Currency risk refers to the risk posed by adverse fluctuations in exchange rates. Diff: 1Page Ref: 11Skill: ConceptObjective: 1-3AACSB: Dynamics of the global economy12) For internationalizing firms, the consequences of poor business management decisions are usually more costly when mistakes occur abroad than when they occur at home. Diff: 1Page Ref: 12
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Skill: ConceptObjective: 1-3AACSB: Dynamics of the global economy13) MNEs with extensive international operations tend to focus mainly on downstream activities such as marketing in foreign countries. Diff: 2Page Ref: 12Skill: ConceptObjective: 1-4AACSB: Dynamics of the global economy14) International business is primarily the domain of large, resourceful firms.
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